Winger Pedro Matias was the toast of Walsall after his header ended their dismal away record in the league.
The Saddlers last won on their travels back in September but they hung on bravely to claim the spoils from this tense encounter.
Keeper Jimmy Walker kept them on terms with two crucial first-half saves and after weathering Bradford's early charge they hit back to clinch a vital win which lifts them above their Yorkshire rivals.
City, who are also desperate to pull away from the drop zone, dominated the early exchanges but couldn't find a way past Walker.
Leading scorer Andy Gray should have done better when he only had the keeper to beat after 28 minutes, but Walker bravely blocked his low drive.
Four minutes later Bradford skipper Ashley Ward sprinted clear and when his low cross flew across the six-yard box full-back Darren Bazeley was grateful to his keeper when he tipped his goalbound clearance over the bar.
Walsall, whose last away success was at Millwall on September 21, defended doggedly and they were rewarded four minutes after the break when on-loan Carl Robinson opened his account for the club.
Darren Wrack's long-range drive struck Chris Shuker on the chest and bounced kindly into the path of Robinson, who beat Aidan Davison with a tidy right-foot finish from 14 yards.
Bradford's 18-year-old substitute Danny Forrest levelled the scores after 62 minutes when he finally beat Walker with a stunning overhead kick.
The promising youngster latched on to Gus Uhlenbeek's right-wing cross and Walker had no chance of stopping Forrest's spectacular right-foot shot from eight yards.
Bradford defender David Wetherall had a header ruled out for a push on Walker and five minutes later Manchester City man Shuker made them pay.
The 20-year-old, who was making his loan debut, rounded off a neat passing move on the edge of the Bradford box by clipping over the perfect cross for Matias to nod home the winner from six yards.